LIUC11 - 1 - Scope management e WBS [modalità compatibilità]

Project ManagementScope Management e WBS

Eng. Giorgio Locatelli

Mauro Mancini ©

Agenda

•Introduction

•Scope management

•WBS

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•WBS

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Project management definition

Turner “A project is an endeavor in which human, (ormachine), material and financial resources are organized in anovel way, to undertake unique scope of work, of givenspecification, within constraints of cost and time, so as todeliver beneficial change defined by quantitative andqualitative objectives”

Burke “ The project manager is the single point of

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Burke “ The project manager is the single point of

responsibility, it is the project manager job to set up a

structure which meets the needs of the project, the needs of

the organization, the needs of the stakeholders and the

needs of the individuals working on the project”.

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Project management definition

SCOPE

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If anyone of the three factors changes at least oneother factor is likely to be affected

ProjectCOSTTIME

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Project management body of knowledge

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Project Management Instruments

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Project Life Cycle

Strategic

PlanningFeasibility Contract Realization Exercise Close Out

Corporate Investment Life Cycle

Plant Life Cycle

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Project Exercise Dismantling

Concept Design Implementation Commission

Project Life Cycle

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Project Life Cycle

LEVEL OF INFLUENCE VS COST OF CHANGES (front-end importance)

Cost of making any changes due to design errors or the clientchanging the scope, were recognized as becoming increasingly moreexpensive as the project progressed

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Project Life Cycle

LEVEL OF DETAIL

The PM philosophy of sub-dividing the scope of work into a numberof smaller units to increase the level of detail and control can alsobe applied to the project life cycle.

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Project management body of knowledge

Scope Management

As the RFP requested it As the work statement specified it

As it was negotiated

As engineering designed it As it was built What the customer wanted

Swings, a classic revisited10Mauro Mancini ©

Scope management

Scope management is defined as; ‘… the process required to ensure

that the project includes all the work required, and only the workrequired, to complete the project successfully. It is primarily

concerned with defining and controlling what is or is not included

in the project.’

Since most projects seem to be riddled with fuzzy definitions, scopeSince most projects seem to be riddled with fuzzy definitions, scope

management takes on a greater importance to avoid scope creep,

and avoid adding features and functionality to the product that are

not part of the original project contract without an appropriate

increase in time and budget

Scope Management is centered around:

– Defining the Scope

– Controlling Changes to the defined requirements of the project

– Managing Scope Creep 1111Mauro Mancini ©

Scope Creep and Gold Plating

Scope Creep

– Efforting work not under contract or identified within the WBS

– Typically initiated by the client

– Impacts cost and schedule performance, and profitability

(depending on the contract type)

– Combat by creating a Change Order and rebaseline (EVMS)

Gold-platingGold-plating

– IT/Systems version of Scope Creep characterized by the inclusion of

additional function points within a specific release

– Typically initiated by the contractor

– Impacts cost performance, and profitability (depending on the

contract type)

– Combat by requirements matrices auditing and compliance

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What impacts on the Scope

Requirements

– the ultimate objectives of the project

Constraints

– limitations such as: time, resource dependency, business, legal,

organizational, technology, offsets and management

Assumptions

– facts for planning purposes (e.g. a new system will not require to– facts for planning purposes (e.g. a new system will not require to

develop new software)

Risks

– any business or technical factor that has reasonable potential to

impact the project


Project Charter

• It is a tool that formally authorizes a project, also

called terms of reference or project mission

• It is especially important when project managers have

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• It is especially important when project managers have

no direct authority over project team members and other

resources, but bear the responsibility for delivery of the

project

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Project Charter

• It should be a tightly worded document outlining what is

to be done and the boundaries of the project

• It should also include:

�Background to the project

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�Background to the project

�Key assumptions

�Business commercial needs

�Scope of work

�Identify key activities, budgets and dates

�Comment on how the project is to be managed

�Role of the project manager

�Reporting structure

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Project Charter

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Scope Statement

• It is a written narrative of the goals, work and products of

the project

• “What do we produce in this project?”

The answer thus creates a big-picture view of what

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The answer thus creates a big-picture view of what

the project is all about

• What is within these boundaries is the solution space

within which the project team can operate

• There are many version of the scope statement

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Main phases

Scope Planning – creating a project scope management plan that

documents how the project scope will be defined, verified, controlled,

and how the work breakdown structure (WBS) will be created and

defined.

Scope Definition – developing a detailed project scope statement as the

basis for future project decisions.

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Create WBS – subdividing the major project deliverables and project work

into smaller, more manageable components.

Scope Verification – formalizing acceptance of the completed project

deliverables.

Scope Control – controlling changes to the project scope.

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Project Scope Management Overview

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Scope Change Control

Even if you defined the scope properly and the customer validated it….

…this does not mean that there will not be Change !


Scope Change Control

Change Control is a huge responsibility of a Project Manager. PMs must

control changes to the project’s Schedule, Scope, and the impact on

its Resources

Scope Creep is the tendency for the requirements of a project to grow

past the initial Scope Statement

Scope Creep is one of the reasons why a PM must:

– spend the necessary time in the definition of the project’s scope

– verify the scope with the stakeholders

– Define with the customer a Scope Baseline through Scope

Statement signoff


Systemic impact of cost change

Two important notes:

– You cannot have a change in Scope without some kind of impact on

Cost and Time.

– It is much easier to implement a change earlier in the Project Life

Cycle than it is in the later stages

SYSTEMIC THOUGHT IS THE KEY!


The cost of scope change


Change Request

Using a numbered change request form is the preferred method of motivating

a scope change. The form should describe the scope change, list associated

drawings and documented, together with the reason for the change.

CHANGE REQUEST

NUMBER: DATE RAISED:

INITAITED BY:

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INITAITED BY:

CHANGE REQUIRED (related drawings/work packages)

REASON FOR CHANGE:

APPROVAL:

NAME POSITION APPROVAL DATE

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Project Communication

Then project communication form enable any stakeholders working on the

project, to make a formal statement. This could be a question, identifying a

problem or making a suggestion. Once the document has entered the system

the configuration management system will ensure that is acknowledged and

auctioned

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Different typologies of Scope Change

Priority:

CRITICAL – project cannot proceed because the change is critical for

project success

IMPORTANT –significant negative impacts or major opportunities missed if

the change is not made

DESIRABLE – benefits outweigh costs, but project can succeed without the

changechange

POST-LIVE - the change should be evaluated for inclusion on the project

evolution plan


Work Breakdown Structure

The purpose of the WBS is to sub divide the scope of workinto manageable work packages which can be estimated,planned and assigned to a responsible or department.

It is the best tool for quantifying the scope of work as a listof work packages since is a hierarchical form of mind mapwhich helps to break complexity down to simple

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which helps to break complexity down to simplemanageable components.

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It is not the activities needed to create the project

deliverables; it's the stuff that the activities create.

A WBS is not the work, but the deliverables. Microsoft

Project suggests WBS as the activity list, but it isn't so. A WBS

is not the activities but the actual deliverables that the

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is not the activities but the actual deliverables that the

customer expects from the project work.

The project scope must be decomposed into things that the

customer will get as a result of the project. Stuff, not

activities. The end result of the WBS is a clear picture of

what the customer will and won't get as part of the project.

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A Work Breakdown Structure is a deliverable-oriented

grouping of project elements that organizes and defines the

total scope of the project: work not in the WBS is outside the

scope of the project.

As with the scope statement, the WBS is often used to

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As with the scope statement, the WBS is often used to

develop or confirm a common understanding of project

scope. Each descending level represents an increasingly

detailed description of the project elements.

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Work Decomposition

Decomposition may not be possible for a deliverable that must be

accomplished far into the future.

The Project team usually waits until the deliverable is clarified to best

develop the WBS.

Different deliverables can have different level of detail:

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Different deliverables can have different level of detail:

– excessive decomposition can lead to non productive management

effort and inefficient use of resources

– not exhaustive level of detail reduces the possibility of best

managing and control.

For practical purposes 3 or 4 level of detail should be sufficient to reach

the desired planning and control approach.

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Work Decomposition

The number of levels can be influenced by:

Level of detail

Level of risk

Level of control

Estimate accuracy

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Estimate accuracy

Work package value

Work package dimension (cost, manhours, duration)

Except for E&C companies with more than 4 levels, sub-

project are used, where the lowest level of WP of a project

constitutes the highest level of another one.

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Work Decomposition

So how far should you break down the project deliverables?

You can follow the "8/80 Rule" the work package equates to

no more than 80 hours of work and no fewer than 8 hours of

work to create that deliverable. You don't want to get so

granular or so vague with your WBS that it's uncontrollable

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granular or so vague with your WBS that it's uncontrollable

and useless.

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WBS example

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WBS example

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WBS development methods

― TOP-DOWN APPROACH

― BOTTOM-UP APPROACH

― WBS (ORGANIZATIONAL) STANDARDS

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― WBS (ORGANIZATIONAL) STANDARDS

― WBS TEMPLATES

What development method to use?

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― TOP-DOWN APPROACH

� If the project manager and the project management

team have little to no experience in developing WBSs

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� If the nature of the project’s products or services is

note well understood

� If the nature of the project life cycle is not familiar or

well known

� If no appropriate WBS templates are available.

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― BOTTOM-UP APPROACH

� If the nature of the project’s products and services is

well understood [For example, if the organization has

developed very similar products or services on previous

projects]

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projects]

� If the nature of the project life-cycle is well known. [If

the organization use always the same project life-cycle]

� Appropriate WBS templates are available. [If the

organization has WBSs from projects with similar

products or services and these can be reused]Mauro Mancini ©


― WBS STANDARDS AND TEMPLATES

� In general, if WBS standards or WBS templates are

available, they can be used, but the choice to use a

sample WBS as template must be made carefully. If

there aren’t similarity between the new project and

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there aren’t similarity between the new project and

projects already performed, the WBS must be

developed with the top-down approach.

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Work Package (WP)

• It is the elementary unit of the project planning and

control

• It constitutes of more elementary activities interrelated,

with objectives and constraints univocally defined

• It is defined in relation with Product Breakdown Structure

(PBS), Activity Breakdown Structure (ABS), and

Organizational Breakdown Structure (OBS)Organizational Breakdown Structure (OBS)

• For every WP, start/finish and available resource are

defined

• Time, cost and quality objectives are measurable to

control them

• A Description is associated to every WP (objectives,

responsibility, authorized budget, start/finish,

milestones, interactions, revisions of all these entries)40Mauro Mancini ©

Work Package (WP)

Crossing a WBS element and an OBS one, a WP it is

obtained as elementary unit of project management

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WBS development rules

RULE 1 (100% RULE)

The sum of the work at the “child” level must equal 100% of the

work represented by the “parent” and the WBS should not include

any work that falls outside the actual scope of the project, that is,

it cannot include more than 100% of the work

RULE 2

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RULE 2

Every breakdown level must be developed adoptin a single

rationale

RULE 3

Different level of the WBS can be developed according to

differente rationale

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RULE 4

Every WBS level and every part of it must be coded to allow WP

research/aggregation useful to planning and control

RULE 5

To choose WP dimension it is necessary consider that at the

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To choose WP dimension it is necessary consider that at the

diminishing of these dimensions, it increase:

• managerial capacities of the single responsible

• WP number with control complications

RULE 6

WBS is the base to highlight interfaces among WPs, so the

necessity of interactions among the correspondent organizational

units that are the responsible of them

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RULE 7

WBS may be developed according to specific needs of the project

considered (WBS ad hoc) or according to a standardized reference

scheme

RULE 8

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It is possible to aggregate elements of WBS according to different

ways respect to those of the WBS hierarchical structure. For

example: activities that determine jointly incomes and cash flow;

materials that belongs to different part of the WBS but are

transported on the same date through the same transport means;

project aspects that involve different sub-systems of the plant.

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Other Breakdown Structure

Cost Breakdown Structure (CBS), which represents the

financial breakdown of the project into budgets per work

packages.

Location Breakdown Structure (LBS), which is used to show

the location of the work and would be appropriate for a

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the location of the work and would be appropriate for a

project which as pockets of work dotted all over the place.

Transport Breakdown Structure (TBS), which is used in

projects characterised by large loads that may find transport

and cranage limitations critical for the breakdown.

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Resource breakdown structure (RBS), which is a variation of

the OBS and is typically used when work elements are

assigned to individuals.

Bill of materials (BOM), which presents a hierarchical view of

the physical assemblies, subassemblies, and components

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the physical assemblies, subassemblies, and components

needed to fabricate a manufactured product. Also called

Product Breakdown Structure.

Project breakdown structure (PBS), which is fundamentally

the same as a properly done WBS. The term PBS is widely

used in application areas where the term WBS is incorrectly

used to refer to a BOM.

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WBS example

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WBS example

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WBS advantages

1. To identify the Project independently on who participates

it

2. To clearly identify project objectives

3. To provide a scheme that guarantee objectives

achievement through inferior objective most controllable

4. To obtain a “different levels” visibility4. To obtain a “different levels” visibility

5. To univocally identify reference sectors of the documents

relative to monitoring, controlling and reporting activities

of the project

6. To highlight interactions rationale among project

elements

7. To identify WP to assign responsibilities and resources

8. To identify innovative and repetitive components

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LIUC11 - 1 - Scope management e WBS [modalità compatibilità]